Ford government threatens to cut funding to towns, cities that break ‘Buy Ontario’ rules
The government wrote to the heads of council "to make clear our government’s expectation" that they would follow a series of rules prioritizing local bids for contracts.
The Ford government has issued a stern warning to towns and cities in Ontario, threatening to cut funding if they fail to adhere to procurement rules aimed at increasing spending on Canadian businesses. Minister of Municipal Affairs and Housing Rob Flack sent letters to the heads of council, emphasizing the importance of following the Municipal Buy Ontario Procurement Directive.
This directive mandates municipalities to prioritize Ontario and Canadian products in their contracts, especially due to recent tariffs and trade actions against Canada.
Flack stressed that compliance with these requirements is not optional and is a "must." Any municipalities found not to be in compliance could face the province reconsidering the provincial funds that they receive. However, the Association of Municipalities of Ontario (AMO) raised concerns, pointing out that more than 98% of municipal procurement for non-construction goods and services already comes from businesses with Canadian addresses, even before the Buy Ontario Act took effect.
The AMO noted that municipalities have had several months to experience the new requirements and are hearing feedback from both municipalities and industry that some rules are adding time, cost, and complexity to the procurement process.
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